The UK’s current account deficit widened significantly, reaching £28.9 billion compared to the previous £21.2 billion. This marks an increase of £7.7 billion, indicating a higher outflow of capital from the country.
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The actual deficit exceeded analyst estimates of £24.9 billion, suggesting a larger-than-expected imbalance in the UK’s international trade and investment flows. This development may exert downward pressure on the British pound and negatively impact sectors reliant on foreign investment, such as real estate and financial services. The market impact is likely to be short-term as investors reassess the UK’s economic stability and external financing needs.